Shares of Franklin Bank Corp. plunged Friday after the beleaguered Houston company reported that it lost $66 million, or $2.64 a share, in the fourth quarter as a result of a $65 million goodwill impairment charge and a $23.5 million increase in its loan-loss allowance.
For the year, Franklin lost about $45.2 million, versus a 2006 profit of $15.5 million, the $5.7 billion-asset company said late Thursday.
Franklin, which has been hit hard by the real estate downturn, said it took the goodwill charge to reflect its declining market value.
Last year its shares fell nearly 80%. They had been rallying in recent days but fell 10.2% Friday, to $5.28.
The increase in the loan-loss allowance boosted Franklin's total allowance to $40.3 million at yearend. Last year its nonperforming assets rose 261%, to $124.6 million.
